Painted Pony Announces Closing of Bought Deal Equity Financing

CALGARY, ALBERTA–(Marketwired – Dec. 2, 2014) – Painted Pony Petroleum Ltd. (TSX:PPY) (“Painted Pony” or the “Corporation“) is pleased to announce that it has closed its previously announced bought deal financing (the “Offering“). Pursuant to the Offering, the Corporation has issued a total of 5,275,050 common shares in the capital of the Corporation (“Common Shares“), which included the full exercise of the over-allotment option granted to the underwriters of the Offering. The Common Shares were issued at a price of $12.00 per Common Share for gross proceeds of $63,300,600. The syndicate of underwriters was led by Cormark Securities Inc. and included FirstEnergy Capital Corp., Canaccord Genuity Corp., RBC Capital Markets, TD Securities Inc., AltaCorp Capital Inc., CIBC, Scotia Capital Inc. and National Bank Financial Inc.

The net proceeds of the Offering will be directed towards the Corporation’s capital expenditure program for the remainder of 2014 and for 2015. The Corporation’s board of directors has not yet approved the capital expenditure budget for the Corporation for 2015; however the Corporation’s capital expenditure program for 2015 is anticipated to focus primarily on drilling, completing, equipping and tying in wells targeting the Montney formation in British Columbia, which remains the Corporation’s primary business objective.

Subsequent to the closing of the Offering, Painted Pony has 99,381,842 Common Shares issued and outstanding.

Advisories & Contact

ADVISORY

Forward-Looking Information: This press release contains certain forward-looking information within the meaning of Canadian securities laws. Forward-looking information relates to future events or future performance and is based upon the Corporation’s current internal expectations, estimates, projections, assumptions and beliefs. All information other than historical fact is forward-looking information. In particular, this press release contains forward-looking information relating to the use of proceeds of the Offering.

Undue reliance should not be placed on forward-looking information, as there can be no assurance that the plans, intentions or expectations on which they are based will occur. Although the Corporation’s management believes that the expectations in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct.

Forward-looking information necessarily involves both known and unknown risks including risks associated with general economic conditions affecting the Corporation’s ability to access sufficient capital. Additional information on risk factors that could affect operational or financial results are included in the Corporation’s most recent Annual Information form and in other reports filed with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) or Painted Pony’s website (www.paintedpony.ca).

Forward-looking information is based on estimates and opinions of management at the time the information is presented. The Corporation is not under any duty to update the forward-looking information after the date of this press release to revise such information to actual results or to changes in the Corporation’s plans or expectations, except as required by applicable securities laws.

ABOUT PAINTED PONY: Painted Pony is a publicly-traded natural gas company based in Western Canada. The Corporation is primarily focused on natural gas and natural gas liquids from the Montney formation in northeast British Columbia. Painted Pony’s philosophy is to grow through exploration and development drilling and strategic acquisitions. Painted Pony’s common shares trade on the Toronto Stock Exchange under the symbol “PPY”.